Is India Set to Finalize an FTA with Chile for Critical Minerals?
Synopsis
India is about to finalize a free trade agreement with Chile, enhancing access to critical minerals, as stated by Commerce Minister Piyush Goyal. This deal signifies a major step in India’s economic strategy, potentially creating millions of jobs and attracting significant foreign investment.
Key Takeaways
India's FTA with Chile will enhance access to critical minerals.
Projected $100 billion foreign investment could create 50 lakh jobs.
India has signed eight FTAs in the last four years.
FTAs open up new opportunities for Indian talent and skills.
India-EU FTA represents a significant share of global trade.
New Delhi, Jan 30 (NationPress) India is on the verge of finalizing a free trade agreement (FTA) with Chile, which will significantly enhance the nation’s access to critical minerals, according to Commerce and Industry Minister Piyush Goyal.
In reference to the agreement with the EFTA countries, he noted it includes a commitment of $100 billion in foreign direct investment aimed at bolstering infrastructure development, innovation, and precision manufacturing within India.
This investment, he stated, could potentially create approximately 50 lakh jobs. Additionally, he underscored New Zealand’s pledge to invest $20 billion in India over the next 15 years, a significant increase compared to its total investment of merely $70 million over the past quarter-century.
Over the past four years, India has entered into eight free trade agreements, showcasing a pivotal transformation in the nation’s global economic engagement, the minister disclosed.
These agreements encompass major economies across Europe and other regions, including the 27-nation European Union, the four-nation EFTA bloc consisting of Switzerland, Liechtenstein, Norway, and Iceland, along with the United Kingdom, Australia, New Zealand, the United Arab Emirates, and Oman.
The Minister emphasized that these agreements are unlocking new and meaningful opportunities for Indian talent, skills, and young professionals, while also fortifying India’s integration with global value chains.
Referring to the India–European Union FTA, Goyal remarked that it covers nearly one-third of the global population, accounts for about 25 percent of worldwide GDP, and holds a significant share of global trade. This was discussed during the World Forum of Accountants organized by The Institute of Chartered Accountants of India (ICAI) in Greater Noida.
He pointed out that the President of the European Commission described the India–EU FTA as the “mother of all deals”.
Goyal highlighted that the European Union imports goods valued at nearly $7 trillion and services worth $3 trillion, collectively representing a $10 trillion market. He insisted that India’s current exports are just a minor fraction of this immense potential and urged that the unprecedented opportunities available must be grasped.
Point of View
The impending FTA between India and Chile represents a strategic move to secure essential resources while enhancing international trade relations. The potential job creation and foreign investment indicate a promising shift in economic dynamics, aligning with the nation’s growth objectives.
NationPress
8 May 2026
Frequently Asked Questions
What is the significance of the FTA with Chile?
The FTA with Chile will enhance India's access to critical minerals, essential for various industries, and is expected to boost foreign investment significantly.
How many jobs could this investment create?
The foreign direct investment linked to the FTA is projected to generate approximately 50 lakh jobs in India.
What other countries are involved in India's recent FTAs?
India has signed FTAs with several nations, including those in the European Union, the EFTA bloc, the UK, Australia, New Zealand, the UAE, and Oman.
What are the potential benefits of the India-EU FTA?
The India-EU FTA covers a significant portion of global trade and economic activity, aiming to enhance trade relations and economic growth for both parties.
What is the total foreign investment mentioned?
The total foreign direct investment commitment associated with the agreement is $100 billion.
